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Bitcoin was Facebook’s first choice says Abra’s CEO

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Bitcoin was Facebook’s first choice says Abra's CEO

Bill Barhydt, CEO of Bitcoin investment platform Abra, claims that Facebook staffers told him the company wanted to use Bitcoin as a cryptocurrency to power its payment platforms. But the social media giant had “no choice” except to develop its own cryptocurrency, due to Bitcoin’s inability to scale.

Barhydt made his remarks last week on the What Bitcoin Did podcast, hosted by Peter McCormack, where he emphasized that his assertion was based on conversations with a number of people directly involved with Libra, Facebook’s cryptocurrency payment platform.

Earlier this year, Abra became the first platform to launch fractional-share investing with Bitcoin, and counts American Express Ventures, Foxconn Technology Group and Arbor ventures among its investors.

In the podcast, Barhydt said he had taken part in multiple conversions with Facebook team members, and they told him that their initial goal was not to create a cryptocurrency, but a payment platform, that served their users’ needs.

“Ideally—from my discussions—they actually would have preferred to use Bitcoin. I think there’s a huge believer in the system. But if you want to build a remittance system and you want to build a cross-border commerce system and you have 1.2 billion users today, what would happen to Bitcoin? Fees would skyrocket. Doing anything with Bitcoin that was transactional was effectively untenable.”

Barhydt said that Facebook had considered all the options, including Bitcoin’s scaling solution, the Lighting Network.

“These are smart people. They’ve looked at Lighting, they’ve looked at Bitcoin, they’ve thought this through. And they came to the conclusion that Bitcoin is not optimized to be a payment network, Bitcoin is optimized to be digital cash right now,” said Barhydt.

He added that this wouldn’t necessarily hold true forever, particularly when the Lightning Network was ready. But he said that Facebook was determined to build a system that was scalable today for payments on its platforms: WhatsApp, Messenger, and Instagram.

Earlier this week, Twitter CEO Jack Dorsey took a swipe at Libra and doubled down on comments that Bitcoin will become the internet’s native currency—and not a commercial alternative.

But while Barhydt admitted that Libra may currently be little more than a private database, he said Facebook had future plans to create something akin to a “scalable Bitcoin.” But “you can’t go fully permission-less out of the gate.”

Perhaps Mark Zuckerberg and Jack Dorsey’s views are more similar than we thought.

Bitcoin News

Bitcoin Annual Investment Flow Could Beat Visa Next Halving

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Bitcoin Annual Investment Flow Could Beat Visa Next Halving
Bitcoin Annual Investment Flow Could Beat Visa Next Halving

Bitcoin (BTC) is already processing 1% of the world’s GDP and the number is growing by “an order of magnitude” every halving cycle. According to statistician Willy Woo, who analyzed data from monitoring resource Coin Metrics, Bitcoin’s investment flow is $727 billion annually.

The number is almost 10% of payment processor Visa’s transaction volumes each year — Visa processes $8.8 trillion in transactions. “Bitcoin’s investment flow (aka annual investment velocity) is presently growing an order of magnitude (10x) every 4 years,” Woo summarized. Per the statistics, Bitcoin should “catch up” with Visa at some point after its next halving cycle, which begins in May. Smaller fiat operators such as PayPal are already falling by the wayside — in 2018, PayPal processed a total of $578 billion.

Woo acknowledged the data for Bitcoin was only an estimate and may include movements between cold wallets held by exchanges, which would not constitute true transactions. Circular payments between wallets, as well as multi-hop transactions with multiple steps, were excluded.

Image result for bitcoin visa

The impressive statistics come as fresh highs in the number of low-balance Bitcoin wallets suggest that more and more private investors are experimenting with the cryptocurrency. According to Glassnode, there are now more wallets than ever with a balance greater than or equal to both 0.01 BTC ($101) and 0.1 BTC ($1,080).

Nonetheless, both private and institutional investors have been found to reward convenience over security when it comes to crypto fund storage. A recent survey revealed that more than 9 in 10 institutional investors, for example, used trusted third parties such as exchanges to store their coins. An industry effort, dubbed “Proof of Keys,” aims to raise awareness of the importance of self-ownership of wallet private keys, but its success so far is difficult to estimate.

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Altcoin News

Craig Wright Threatens BTC and BCH With Possible Lawsuits

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Craig Wright Threatens BTC and BCH With Possible Lawsuits
Craig Wright Threatens BTC and BCH With Possible Lawsuits

Craig Wright, who claims to be the Bitcoin creator known as Satoshi Nakamoto, has warned the Bitcoin (BTC) and BCH to stop using the Bitcoin database in order to avoid potential lawsuits. He claims that both networks may also violate the laws under the terms of Bitcoin’s original EULA and MIT License. The man behind Bitcoin SV in the recent personal blog post added that he is going to take back control of the system he created, and is ready to fight for his rights this year.

Wrights argues that the distributed Bitcoin database rights are governed by the Copyright, Designs and Patents Act 1988 (CDPA) and the Copyright and Rights in Databases Regulations 1997 (Databases Regulations 1997). So it should be considered as personal property. Dr. Wright claims that representation of 21 million total Bitcoin which each divisible by 100 million Bitcoin is only a verbal deal. The Bitcoin’s creator should have the full rights to claim this unilateral contract with those nodes to issue, adding that:

“As the creator of Bitcoin, I maintain the sui generis rights to any copy of the database created from Genesis in January 2009. I shall not be relinquishing the ownership. I will be licensing it, and have already engaged in a process.”

Ever since 2018 Craig Wright has been the defendant in a lawsuit filed on behalf of the estate of Dave Kleiman, Wright’s late business partner. The claim alleged that following Kleiman’s death in 2013, Wright unlawfully appropriated more than a million Bitcoin (BTC) that the duo had mined jointly in the early years of the cryptocurrency, as well as some related intellectual property. The new trial with Kleiman’s case has been postponed to April 17, and the trial won’t be held till July 2020. But in any case, it shouldn’t take long to find all these claims are legitimate or not.

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Bitcoin News

Chinese Quarantines Cash To Stop Coronavirus – Bitcoin Not An Issue

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Chinese Quarantines Cash To Stop Coronavirus - Bitcoin Not An Issue
Chinese Quarantines Cash To Stop Coronavirus - Bitcoin Not An Issue

It has been reported that China has started a quarantine of its used banknotes to try to stop the spread of the coronavirus. Meanwhile, the crypto community began to pick up on the news commenting that the use of Bitcoin as a means of payment should fix the issue.

Hubei province, where Wuhan is located, recorded a dramatic spike of almost 15,000 new cases and 242 new deaths in just 24 hours after provincial authorities changed their method for diagnosing cases on Feb 13. Dovey Wan, founding partner of Primitive Crypto claimed on twitter earlier today that the government is underreporting the numbers. BBC’s recent report informed of 2,009 new cases and 142 more deaths. According to the official figures, the total number of infected in the nation is above 68,000, and the death toll is at 1,665.

Image result for quarantines

Chinese crypto mining facilities allegedly being shut appears to have had little to no impact on Bitcoin (BTC) network hash rate. The network appears to be performing stronger than ever with hash rates continuing to rise. Mati Greenspan, the founder of Quantum Economics,said that it is hard to estimate the impact on the market right now, “How it will affect Bitcoin’s price, I really couldn’t tell you. At the moment, I don’t feel like it is.” Meanwhile a spokesperson for mining hardware manufacturer Bitmain said that they are seeing no impact at all.

While the crypto community is speculating on twitter whether Bitcoin could have been the answer to the spread of the virus through banknotes, a Coronavirus based ERC-20 corona-coin (NCOV) has been launched according to a Reddit post. According to the website, its aim is to spread awareness about the outbreak.

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